On April 9, Gov. Mike Braun announced a 30-day suspension of the 17.2-cent gasoline use tax, leaving the 36-cent excise tax in place.
Hoosiers, much like the rest of the nation, have been subject to higher gas prices. At the time of this reporting, the average price per gallon for regular gas was $4.11nationwide, according to AAA. In Indiana gas prices have hovered around $3.79 per gallon, while Marion County has averaged around $3.65. Prices have hovered around $3.79 per gallon while Marion County has averaged around $3.65 for regular gas.
Since Braun’s 30-day gas use tax suspension, prices have fallen, but other state officials say the Indiana can also afford to waive the excise tax.
“I support the sales tax suspension, but Hoosiers need more than a couple of dollars,” State Rep. Gregory W. Porter (D-Indianapolis) said. “Prices have started to fall. But gas is expected to stay above $3 a gallon for the rest of the year. Prices go up like a rocket and come down like a feather.
An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the Indiana state government are the fuel tax on gasoline and the tax on cigarettes and alcoholic beverages.
Indiana’s excise taxes are flat per-unit taxes that are paid directly to the Indiana government by the merchant before the goods can be sold. Excise taxes are collected from businesses but according to Tax-Rates.org, virtually all Indiana merchants pass on the excise tax to the customer through higher prices for the taxed goods.
“Braun should suspend the excise tax. There’s nothing in the Indiana code or the constitution stopping him, only precedent. Suspending the excise and sales tax would save 53.2 cents a gallon. If you have a 16-gallon tank, that’s around $9 saved,” Porter said.
With the introduction of the state’s proposed new tolls on Interstate 70 (I-70), Hoosiers hold that this influx of revenue allows the local government to expend the funds it would take to lower gas prices now.
“Indiana can afford this tax break, especially with the $700 million the governor will rake in with higher tolls. The ball is in the governor’s court,” Porter said.
Earlier this year, Braun announced a 2026 agenda that will focus on affordability in housing, energy and health care.
“Hoosiers need solutions that help make ends meet, and my 2026 agenda is focused on tackling these kitchen table issues. Our number one focus is making life better and more affordable for Hoosiers,” Braun said in a statement.
As Indy residents continue to look for ways to save a buck, the original gas use tax holiday will conclude on May 9, 2026.
As of April 27, there has been no announcement to support waiving the excise tax.
For more information visit in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/miscellaneous-tax-rates/#gas.
Contact Staff Writer Malik Simon at 317-762-7847.
Malik Simon is a Staff Writer for the Indianapolis Recorder Newspaper. Originally from Memphis, TN, he graduated from Mississippi Valley State University with a Bachelor of Arts in General Studies concentrating on journalism. Before joining the Recorder, he wrote for the Devil’s Gazette newspaper at MVSU and served as a freelance content and video editor. He seeks to use media to help communities flourish through literacy and factual reporting.
